Swan Energy announced on Monday that its subsidiary, Swan LNG Pvt Ltd, has prepaid a significant portion of its loan, amounting to Rs 2,206 crore, to a consortium of lenders. Following this prepayment, Swan LNG’s outstanding debt has been reduced to Rs 1,611 crore, resulting in an estimated annual interest cost saving of around Rs 250 crore. The company, however, did not disclose the names of the lenders involved in this transaction. Prior to the repayment, Swan Energy Group’s total debt stood at Rs 3,817 crore as of December 2023.
To facilitate the prepayment, Swan Energy itself provided financial assistance by lending Rs 2,210 crore to Swan LNG. This financial move underscores Swan Energy’s commitment to reducing its overall debt burden and optimizing its financial structure. Notably, Swan Energy recently raised Rs 3,000 crore through a qualified institutional placement (QIP) of equities. The QIP garnered investment from a diverse group of entities, including SBI Life, LIC, LIC Mutual Fund, Tata Mutual Fund, Infini Mutual Fund, and several others, indicating investor confidence in Swan Energy’s future prospects.
Meanwhile, IFFCO, a prominent public sector fertilizer company, has taken legal action by approaching the National Company Law Tribunal (NCLT). IFFCO seeks to prevent Triumph Offshore, a joint venture between IFFCO and Swan Energy, from passing any resolutions without its consent. Additionally, IFFCO aims to restrain Triumph Offshore from issuing any shares or securities to lenders as collateral against loans. Triumph Offshore operates a floating storage and regasification unit, with IFFCO holding a 49 percent stake in the venture. This legal development underscores the complexities involved in joint ventures and the importance of clear governance structures in such partnerships.
